Banks Make Up For Their Subprime Losses By Charging You $3 To Use An ATM

JP Morgan Chase and Bank of America now charge $3 for non-customers to use their ATMs. Wachovia increased fees at a potion of its ATMs, and the average fee that your bank charges you to use another bank’s ATM has risen as well.

Why? Analysts say that its a direct result of the subprime meltdown. Faced with deteriorating investments, banks need to squeeze someone in order to make up for their mistakes.

That’s where you come in.

“If you need to hit your target, one of the easiest ways to do it is to raise your fees,” Keith Horowitz, a banking analyst at Citigroup Inc., told the WSJ “It falls straight to the bottom line.”

Banks deny that the ever-increasing fees have anything to do with their recent mortgage woes, naturally.

“We’re always looking for new sources of revenue,” says Mike McWhortor, a spokesman for the First Horizon National Bank, a regional bank that charges a $35 “not sufficient funds” fee.